Credit Karma Review: How to use Credit Karma to get good credit fast (without using the banks)

Credit Karma Review: How to use Credit Karma to get good credit fast (without using the banks)

Just imagine you are buying a car, or performing some small home improvements. You apply for a loan and you are advised that you don’t qualify for the best rate “because of your credit.” What does that mean? It could mean that you needed a “700” credit score and you may only have a “698.” You could easily raise your score up 2 points, apply next month and get the lower rate, but you are left in the dark–like every other American.  And if the big banks can charge you just half of a percent higher interest rate on a mortgage “because of your credit,” it could easily cost $30,000 to $50,000 or more. Multiply the additional profit from keeping 100’s of millions of Americans also in the dark about their credit, and billions of extra revenue flows to the mega banks. This is another case where if financial education is LOWER, the banks make MORE money.

Credit Karma is changing everything. How? By giving you free access to your credit score and not charging you to do so. Also, because they use a “soft pull” to check your credit, it does not effect your score when you check it. Now before you apply for a loan you can know what your credit score is and find out what you need your score to be to get the best rate. Better yet, even after you secure your loan, you can then know what is needed to raise your score and find better rates in the future. For example: You could get approved at 8% now and then get approved at 3% a few months later, and refinance your loan over to your local credit union. This could save you a small fortune, and cost the banks the same. Good news for us all!

I personally have been using Credit Karma to access my credit score for several months now. I like to “test the waters” myself before I recommend it to others. It has been a great experience overall. The mobile App is simple and is updated once a week with my score. With more than 20 million users of Credit Karma, I wonder how much Americans will save by actually accessing (and understanding) what the banks would prefer you not know.

Now that you know where to find your score for free, and how to monitor it, how can you raise your score fast? First, you can use the free tools that are offered on www.CreditKarma.com, and the “My Credit Report Card” that will give you a rating of “A” to “D” and suggestions of how to improve your score in each area. It is simple…and I like simple.

Credit Karma may tell you that you need to use more credit to get a better score. Here is the solution to not using a bank, or paying interest. Meet with your local credit union and tell them you would like 2 secured credit cards to help you build your credit. Once approved, you can charge a small amount (a tank or gas or a coffee) and pay it off each month. Your score should begin to rise. Because credit is not established overnight, you may have to be patient and wait to see it rise over time. Remember, you won’t be paying interest ever to get good credit if you pay the full balance every month, and most importantly you can remain Bank-Free for life!

If you happen to start getting credit cards in the mail, this means that the megabanks somehow got access to your information, and would like you to borrow from them. Just call 1-888 5-opt-out (567-8688) to stop receiving “preapproved” offers in the mail. You can save a tree, and remember, you are only “preapproved” to start enslaving yourself in debt to Wall Street. There is nothing special about it.

Let me know of you like Credit Karma and if you have had a great experience. Perhaps you saved a ton of money on a refi? Let me know. I love to hear good news. Best, Mark

 

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